The Swiss Real Estate market may have hit its peak. The momentum they once had is slowly decelerating and growth rates are decreasing all around. With a fall in the value of housing in Zurich, combined with the slowdown of price increases all across Switzerland, this could be the ideal time to invest in Real Estate for those in the market.
During 2000 to 2012, the Swiss real estate market saw a huge increase in housing prices throughout the country. This increase was due in part to the monetary easing of interest rates in the late 1990s and early 2000s. These reductions in interest rates contributed to the recovery of the real estate market crash in the 1990s.
The latest market projections and statistics bring with them a breath of fresh air to those that remember the Swiss market housing crash. With today’s lower interest rates, now may be the perfect time for investors to jump back into the real estate market in Zurich once again.
However ,it’s important for investors to keep in mind that due to the latest market statistics, rental yields in Zurich may start off slowly and on the poor side of things. This is because many Swiss rentals still fall into the poor classification because rental returns or yields are much lower than in other parts of the world. In Zurich, the overall average per square meter for an apartment is around 10,600 EUR, whereas the average rent for the same size apartment is $3,400 per month. This will provide investors with an average yield of 3.22%.
While the market is slowing down, interest rates moving towards an all time low, help to present a viable investing market. It has always been a good rule of thumb for investors to buy low, and sell high, so why should the real estate market be any different?